Use the following information to solve for both the levered and unleved NPV & IRR.. Please note: mortgage and income numbers are to be annual numbers, not monthly. Potential Investment Purchase Price: Years: LTV: Rate: Origination Expenses: NOI Required Return Levered: Required Return Un-Levered: Expected Price Appreciation: Selling expenses: Expected holding period: $700,000.00 30 80.0% 7.0% 3.0% $75,000.00 13.0% 10.0% 4.0% 5.0% 2 PAID ANNUALLY of the loan amount Per Year Years of the sale price Years
Use the following information to solve for both the levered and unleved NPV & IRR.. Please note: mortgage and income numbers are to be annual numbers, not monthly. Potential Investment Purchase Price: Years: LTV: Rate: Origination Expenses: NOI Required Return Levered: Required Return Un-Levered: Expected Price Appreciation: Selling expenses: Expected holding period: $700,000.00 30 80.0% 7.0% 3.0% $75,000.00 13.0% 10.0% 4.0% 5.0% 2 PAID ANNUALLY of the loan amount Per Year Years of the sale price Years
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Use the following information to solve for both the levered and unleved NPV & IRR..
Please note: mortgage and income numbers are to be annual numbers, not monthly.
Potential Investment
Purchase Price:
$700,000.00
Years:
30
LTV:
80.0%
Rate:
7.0%
PAID ANNUALLY
Origination Expenses:
3.0%
of the loan amount
NOI
$75,000.00
Per Year
Required Return Levered:
Required Return Un-Levered:
Expected Price Appreciation:
Selling expenses:
13.0%
10.0%
4.0%
Years
5.0%
of the sale price
Expected holding period:
2
Years
Workspace:
Transcribed Image Text:Levered
CF-0
CF-1
CF-2
NPV =
IRR =
Un-Levered
CF-0
CF-1
CF-2
NPV =
IRR =
12
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